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Old 18th March 2005 | 18:36
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Thunderball 2
The Aquatone Article
 
Joined: May 2004
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From: London
JV

I guess my exclamation mark after A340-200 was confusing. Of course you're right - "a failed design" sums it up well. But my exclamation mark was to indicate surprise that there should be ANY demand for the type, rather than to emphasize the -200. Demand is weakest of all A330/340, but in fact when examples have become available recently, they have been taken up. BTW A345 may be difficult in years to come.....

However, none of this is in contradiction to your comments about people wanting to sell them but having no takers. The problem for them is that the book value of these aircraft will be way above what the market would pay, and they'll not be able to crystalize a massive write-off by selling them for what they'd get in the market. Same thing happened with A310-300. But operating lease rates of "failed designs" will often be closer to the debt service cost than the offer prices will be to the book values, so leasing will be the best bet. That having been said, most airlines won't dry lease. In any event, high book values will preclude sale for conversion as freighters, so we're back to where we started.
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